Indian Oil suffers Rs 4,200cr due to GST
PrintListen to this Article
Input tax credit means at the time of paying tax on output, you can reduce the tax you have paid on inputs. "We face the burden of dual tax compliance. First for non-auto fuels which are under GST and the second auto fuels that are not under GST, but the old VAT system," AK Sharma, director - finance, Indian Oil said.
He explained that for automotive fuels like petrol and diesel - which account for 60% of the business — the company was not able to claim input tax credit. "We are taking it up with the government. The permanent long term solution is to bring everything under GST. That's a bigger issue," he said. "Since there is a state GST component too on taxes, we are talking to state governments, asking them to allow us to use the input tax credit in some form. Denial of credit is enriching the state and central government," he added.
An internal assessment made by the Corporation shows that the company will suffer Rs 2,000 crore on revenue items and another Rs 2,200 crore on capital items because of denial of input tax credit for auto fuels. Notwithstanding the talk of country migrating to electric vehicles, Indian Oil has embarked upon debottlenecking its existing plants to enhance capacity. At both Paradip and Panipat refineries the capacities will be increased from 15 million tonnes a year to 20 million tonnes a year in each of them. At Barauni it will increase to 9 million tonnes from 6 million. Additions are also under way at Mathura refinery, he said.
In its bid to push renewable energy, nearly 7000 retail fuel outlets of the corporation has turned to solar power and another 8000 are likely to be converted by this year. #casansaar (Source - TOI)
Category : GST | Comments : 0 | Hits : 1246
TEST
Dear Taxpayers, 1. GSTN is pleased to inform that an enhanced version of the GST portal would be launched on 3rd May 2024. The effort is to improve user experience and ensure that the information you need is accessible and easy to navigate. 2. Key Enhancements Include (PDF with screenshots attached): i. News and Updates Section: We have introduced a dedicated tab for all news and updates. This section now includes a bet...
The Supreme Court on Friday issued notices to the central government, the Central Board of Indirect Taxes and Customs (CBIC), the Goods and Services (GST) Council and the National Anti-Profiteering Authority (its functions have been taken over by the Competition Commission of India) on a petition challenging a Delhi High Court verdict, upholding the constitutional validity of anti-profiteering provisions filed by a real estate company. The petition, filed by Swati Realty, says the high court ...
The delectable Malabar Parota will taste even better with the Kerala High Court ruling that the popular flatbread will attract GST at 5 per cent and not 18 per cent. With this the court has turned down order by the State’s Authority of Advance Ruling (AAR) and Appellate Authority for Advance Ruling (AAAR). Disposing a petition by Kochi-based Modern Food Enterprises, a single judge bench of Justice Dinesh Kumar Singh said if key inputs (cereals, flour, starch, etc) and preparations are s...
A businessman from Delhi was taken into custody by the Noida police for his alleged involvement in a massive Rs 15,000 crore GST fraud that was exposed last year, TOI reported. Tushar Gupta, aged 39 and residing in Tilak Nagar, was arrested as the 33rd suspect in this case. The police revealed that Gupta had exploited input tax credit (ITC) using 35 fake companies, resulting in a loss of Rs 24 crore to the exchequer over the past two years. He was reportedly part of a syndicate that utiliz...
Comments